Studying can be an exciting, yet stressful time. The last thing you want to worry about between exams and relationships are your finances! Ready to find a low rate, low fee product? Compare student cards right here!
A student credit card is an excellent way to manage spending and expenses. These cards sport low credit limits, so you cannot spend beyond your means or accumulate unpayable debt. To top it off, you can still reap all the benefits of being able to buy now and pay later.
These cards are bare-bones products that let you shop with funds from a lender and pay it off later. Not only will you learn how to better manage your finances, you’ll build up your credit rating: a ‘score’ that influences your eligibility for taking out certain financial products.
You’re unlikely to have access to significant rewards and benefits with a student credit card, but you won’t attract high fees and interest rates either. In short, it’s a basic credit product that suits a student’s needs: that’s all you need it to do!
If you’re not confident in your ability to pay off the balance each statement period, then you should consider a debit card instead.
Look for a card that suits your spending habits. Don’t worry, it’s easy. Figure out how much you can afford to repay each bill, what interest rates and annual fees apply to your card, and whatever fees you may owe.
In particular, be wary of the following things:
Credit cards are simple products; it’s the interest that confuses people. When you fail to pay off your balance at the end of each statement period, you’ll be charged interest. If month after month you find this keeps happening to you, consider it a wakeup call: you’re spending more than you should, and (potentially) causing damage to your credit rating.
On a happy note, you can reverse such damage and climb out of the hole of debt you’ve been digging. Many cards offer an interest-free balance transfer for up to 12 months. This will make it easier to pay off the previous balance of a card and get your finances back in order. Just remember that any new purchases you make on that balance transfer card immediately attract interest, so be careful with it!
If a balance transfer isn’t an option for you, consider moving your debt into a personal loan with a lower interest rate than your credit card. Then, pay it off little by little.
The criteria for getting a credit card are simple. Here are some of the more common eligibility rules:
You will also be asked to disclose your income (perhaps in the form of payslips), what you typically spend each month, information about any other loans or debt you’re currently encumbered with, and basic personal information (full name, address, etc.)
Are you enrolled in an accredited school and studying full time? Then take control of your finances and compare credit cards now!